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Seattle & Northwest  + Portland  + Industrial  | 
Portland Industrial

Portland Industrial Exhibits Little Change From Pre-Pandemic Days

The Portland industrial market has continued to perform with little-to-no change from pre-pandemic environments, maintaining a strong average quarterly absorption and growing lease rates, according to the latest CBRE MarketView. At the close of second quarter 2021, Portland industrial had a year-to-date net absorption total of nearly 1.4 million square feet, already outperforming both 2019 and 2020 year-end totals.

With an additional 643,000 square feet of preleased space set to deliver before year end, early fundamentals are setting the stage for a strong year in industrial leasing. Additional leasing trends in 2021 have included longer lease terms ─ with some landlords asking more than five years ─ and large tenant availability being in short supply.

For sizeable Portland industrial users, there are currently only nine spaces available of more than 200,000 square feet and only 8.2 percent of available properties offer contiguous space larger than 50,000 square feet. Limited supply paired with land scarcity and rapidly growing land values may increase tenant interest in tertiary markets surrounding I-5 going north into Washington or south into Salem. The scarcity of space and significant lease rate growth in the next 12 to 24 months will continue to increase competition for prime spaces in highly desired submarkets, says the report.

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

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